A year ago, in Action Comics, Superman reported plans to renounce his U.S. citizenship. ”Truth, justice, and the American way’ – it is insufficient anymore,’ the comic book superhero said, after both Iranian and American authorities criticized him for joining a peaceful anti-government protest in Tehran. This past year, almost 1,800 people used Superman’s lead, renouncing their U.S. citizenship or handing in their Green Cards. That’s a file amount because the IRS began creating a listing of people who renounced in 1998. It is also nearly eight times more than the amount of citizens who renounced in 2008, and more than the whole for 2007, 2008 and 2009 combined. But not everyone’s motivations are as Superman’s as lofty.
Many say they parted tactics with America for tax reasons. The USA is one of many only nations to tax its residents on income received while they are living abroad. And just as Americans stateside must file taxation statements each April – this season, the contract is Tuesday – an estimated 6.3 million U.S. people living abroad support for what they describe as an even tougher means of reporting their income and international accounts to the IRS. For June them, the timeline is. The National Taxpayer Advocate’s Office, area of the IRS, produced a document in December that details the difficulties of processing taxes from overseas. It cites a scarcity of local and foreign-language resources, an insufficient on the web processing options and large paperwork. For all those wanting to legitimately escape the filing requirements, the only way is to formally renounce their U.S. citizenship.
Last year, IRS records indicate that at the least 1,788 people did, and that is likely an underestimate. The IRS publishes in the Federal Register the names of those that give up their citizenship, and some who renounced state they’ve not seen their name on the list yet. The State Department said records it maintains vary from those released by the IRS. They indicate that renunciations have remained stable, at about 1,100 every year, said an official. The decision by the IRS to release the names is known by lawyers as ‘name and shame. That is because people who renounce are seen as willing to quit their citizenship largely for personal reasons. There’s also an ‘exit tax’ for the very rich who decide to leave. Over the last 25 years, a number of millionaires and billionaires have renounced their citizenship. But those of more moderate means postpone, too. They say leaving America is about more than income it’s about privacy and red tape.